November 10, 2010
This article is part of the Rising Star Portfolios series.
The Dada Portfolio's first purchase, China Yida (Nasdaq: CNYD ) , has run up 20% in a week. What kind of insanity is this? Watch the video and then read on below:
Yida's business of turning Mother Nature's beauty into a profit-generating enterprise is just the type of audacious capitalism that we love to see. While Walt Disney (NYSE: DIS ) and Cedar Fair (NYSE: FUN ) have to spend heavily to build out their attractions, Yida's capital expenditures were taken on by the good Earth herself, freeing the company to generate an incredible operating margin of 56% from its tourism business.
As China's middle class burgeons and disposable income grows, Yida should see even more opportunity. While this is undoubtedly a volatile and potentially risky stock, the Dada Portfolio has its position sized accordingly and will stand to gain if last week's 20% turns out to only be the beginning.
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The Dada Portfolio is a part of the Rising Star series of real-money portfolios. It is co-managed by Sean Sun and Ilan Moscovitz. If you're interested in learning more about the portfolio, click hereto join us on our discussion board.